This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is the capital accumulation equation used by Solow? What will be an ideal ... (Read 63 times)

burchfield96

  • Hero Member
  • *****
  • Posts: 610
on: Jun 30, 2018
What is the capital accumulation equation used by Solow?
 
  What will be an ideal response?

Question 2

The average propensity to consume (APC) is
 
  A) the rate at which real consumption spending changes over time.
  B) the percentage of real disposable income saved.
  C) the percentage of additional real disposable income that will go toward additional consumption spending.
  D) the percentage of real disposable income consumed.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juliaf

  • Sr. Member
  • ****
  • Posts: 344
Reply #1 on: Jun 30, 2018
Answer to Question 1

According to Solow, the capital in the current year is equal to the capital of last year less the depreciated capital plus the level of investment. This implies:
Kcurrent year = Klast year - Kdepreciated + I
or, Kcurrent year = Klast year - (depreciation rate  Klast year) + I
or, Kcurrent year = (1 - depreciation rate)  Klast year + I

Answer to Question 2

D


burchfield96

  • Member
  • Posts: 610
Reply 2 on: Jun 30, 2018
Gracias!

helenmarkerine

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

An identified risk factor for osteoporosis is the intake of excessive amounts of vitamin A. Dietary intake of approximately double the recommended daily amount of vitamin A, by women, has been shown to reduce bone mineral density and increase the chances for hip fractures compared with women who consumed the recommended daily amount (or less) of vitamin A.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
How to classify whether an equation is linear, quadratic, or cubic How to classify whether an equation is linear, quadratic, or cubic
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
According to the Balmer-Rydberg equation, electromagnetic radiation with wavelength λ = 486.1 ... According to the Balmer-Rydberg equation, electromagnetic radiation with wavelength λ = 486.1 ...
X^4-2x^3-3x^2+4x+4=0 Solve the following equation X^4-2x^3-3x^2+4x+4=0 Solve the following equation
What if the equation for the parabola is a trinomial? How would you substitute the y-points ... What if the equation for the parabola is a trinomial? How would you substitute the y-points ...
Video: Types of Transport - Uniport, Antiport and Symport (Glucose and Na+K+ Transporters)

For a complete list of videos, visit our video library